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Essentials of Marketing

Chapter 5 Final Consumers and Their Buying Behavior

McGraw-Hill/Irwin

Copyright 2012 by The McGraw-Hill Companies, Inc. All rights reserved.

At the end of this presentation, you should be able to:


1. Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individuals buying behavior. Understand how social influences affect an individuals buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions. Understand important new terms.
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2.
3. 4. 5. 6.

Consumer Behavior for Marketing Strategy Planning (Exhibit 5-1)

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Consumer Behavior and Marketing Strategy Planning (Exhibit 5-1)


Final Consumers
CH 5: Final Consumers and Their Buying Behavior Marketing mixes CH 6: Business and Organizational Customers and Their Buying Behavior All other stimuli

Person making decisions


Economic needs Psychological variables Social influences Purchase Situation

Consumer decision process Person does or does not purchase (response)


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A Model of Influences on Consumer Behavior (Exhibit 5-2)


Marketing mixes All other stimuli

Person making decision


Economic needs Economy of purchase Convenience Efficiency in use Dependability Income Psychological variables Motivation Perception Learning Attitude Trust Lifestyle Social influence Family Social class Reference groups Culture Ethnic groups Purchase situation Purchase reason Time Surroundings

Consumer decision process

Person does or does not purchase (response)


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Economic Needs Affect Many Buying DecisionsBut Theyre Not the Whole Story

Courtesy of The Procter & Gamble Company.

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Psychological Influences within an Individual


Needs

Wants

Drives Consumers seek benefits to match needs and wants!


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Possible Needs Motivating a Person to Some Action (Exhibit 5-3)

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The PSSP Hierarchy of Needs (Exhibit 5-4)

Personal Needs

Social Needs

Safety Needs

Physiological Needs
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Checking Your Knowledge


Ads for Haynes Jeep-Chrysler feature the slogan, Come to Haynes, where the fun begins. This is an appeal to the consumers:

A. physiological need.
B. safety need. C. personal need. D. social need. E. information need.
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A New Role for Yogurt

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Interactive Exercise: Needs

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Perception Determines What Consumers See and Feel


Selective Exposure

Selective Retention

Selective Perception
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Checking Your Knowledge


Pat purchased a Ford Taurus, but traded it for another brand before it was out of warranty because it constantly needed repairs. Now, every time Pat sees an ad that mentions the quality of Fords new vehicles all she can think about is the problems she had with her Taurus. This an example of: A. need-based thinking. B. selective retention.

C. selective exposure.
D. selective perception. E. psychographics.
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The Learning Process (Exhibit 5-5)

Drive

Cues
Reinforcement Response
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Attitudes Relate to Buying


Belief: An Opinion

Attitude: A Point of View

Green attitudes and beliefs Changing Negative Attitudes Ethical Issues May Arise
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Building Consumer Trust

Key Issues

Meeting Expectations Is Important

Psychographics Focus on Activities, Interests, and Opinions

Activities Interests Opinions

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Lifestyle Dimensions (and some related demographic dimensions) (Exhibit 5-6)

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Family Life Cycle Influences Needs (Exhibit 5-7)

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5-20

Family Life Cycle

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5-21

Interactive Exercise: Family Life Cycle

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Social Influences Affect Consumer Behavior

Courtesy of The Procter & Gamble Company.

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Simple Approaches for Measuring Social Class in the U.S

Occupation

Education

Type of Housing

Location of Housing

Income Is Not the Main Determinant!


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Other Social Influences

Reference Groups

Opinion Leaders

Culture
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Checking Your Knowledge


Anime, the cartoon-like Japanese art form, has generated significant interest among Generation Y consumers in the U.S. Anime conventions occur frequently and the largest ones draw more than 20,000 attendees. Anime fans, many in costume, come to these conventions to shop, participate in anime workshops, and to simply hang out with people with similar interests. Promotion of these conventions capitalizes mainly on: A. learning. B. psychological needs. C. selective processes. D. reference group influences. E. culture.
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Individuals Are Affected by the Purchase Situation


Purchase Reason Physical Surroundings

Time Available

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An Expanded Model of Consumer Behavior (Exhibit 5-8)


Marketing mixes
Economic needs

All other stimuli


Social influences

Psychological variables

Purchase situation

Consumer decision process


Need awareness

Routinized response Problem solving


Information search Identify alternatives Set criteria Evaluate alternatives

Purchase decision

Experience after the purchase

Postpone decision Feedback based on experience

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Problem Solving Continuum (Exhibit 5-10)


Low involvement Frequently purchased Inexpensive Little risk Little information needed High involvement Infrequently purchased Expensive High risk Much information desired

Routinized Response Behavior

Limited Problem Solving

Extensive Problem Solving

Low involvement

High involvement

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Limited or Extensive Problem Solving?

Courtesy of The Procter & Gamble Company.

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Adoption Process Steps


Awareness Interest Evaluation Trial Decision Confirmation
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Dissonance may set in after the decision!

Problem Solving

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Checking Your Knowledge


Alice was a bit unsure about her decision after buying a new car. Her uneasiness was diminished after receiving a congratulatory note from the owner of the dealership. The note contained a coupon stating that her first scheduled maintenance on the vehicle would be free. These tactics are part of the dealers strategy to reduce: A. dissonance. B. low involvement purchasing.

C. routinized response behavior.


D. social influences. E. information search.
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You should now be able to:


1. Describe how economic needs influence the buyer decision process. Understand how psychological variables affect an individuals buying behavior. Understand how social influences affect an individuals buying behavior. Explain how characteristics of the purchase situation influence consumer behavior. Explain the process by which consumers make buying decisions. Understand important new terms.
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2.
3. 4. 5. 6.

Key Terms
Economic buyers Economic needs Discretionary income Needs Wants Drive Physiological needs Safety needs Social needs Personal needs Perception Selective exposure Selective perception Selective retention Learning Cues Response Reinforcement Attitude Belief
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Key Terms
Expectation Trust Psychographics Lifestyle analysis Empty nesters Social class Reference group Opinion leader Culture Extensive problem solving Limited problem solving Routinized response behavior Low-involvement purchases Dissonance Adoption process

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